November 30, 2008 by Dan White.

End If Year Tax Strategies

Your investments;

Tax strategies need to be implemented prior to year end. The system allows for doing your taxes after the year end after it is too late to make strategic moves.
No one can give guaranteed advice without taking risks. So it you don’t think the stock market is going to bounce back, and you have some serious capital gains, it may well be time to unload any bad stocks.

Remember that capital gains and losses can not be applied against your salary or business income. They can only be applied to your capital gains and losses basket. The odds work in the tax man’s favour here. More people lose money in the markets than they make. So; so long as you understand the concept of capital gains and losses is to put money in the tax collectors pockets, you can make better buy and cell decisions.

By selling losing stocks before the end of the year, you can reduce tax that might otherwise be payable on capital gains you already made in 2008.

Also consider that you can trigger a refund of any 2005, 2006 or 2007 capital gains taxes you’ve already paid, by carrying it back.

Consider also the cost associated with buying and selling. The stock market industry pays out a handsome profit for those who choose to use their services. Part of wise investing is to be very clear on the costs involved in each transaction.

Do not sell stocks until after 31 days of acquiring them to avoid falling into the `Superficial Loss` Trap. If you sell a stock to trigger a loss, and any related person (your spouse, a trust or corporation you control) purchases it shortly thereafter, you’ll end up in trouble. The superficial loss rules prevent you from using the capital loss if you or your affiliate buys an identical property during the period that begins 30 days prior to the sale and ends 30 days after the sale. So, if you or your spouse actually wants to buy back the same investments, you’ll have to wait at least 30 days.

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November 4, 2008 by Dan White.

There are 2,400 tax auditors in the GTA. The tax collectors want your money.  So be prepared the tax man commeth and the tax man taketh… unless you are tax audit proof.

What that means as a small business is; if you do not want a CRA Audit to upset your life, cause you stress and for you to lose thousands of dollars of legitimate deductions because you did not do rock solid tax bookkeeping, then you need an audit proof solution to protect your after tax dollars.

The standard bookkeeping systems make true the words “Two things in life are sure; one is death and the other is taxes.”  This statement is true if you use conventional approaches to record keeping. Quickbooks is not audit ready accounting. If you have to get ready for an audit then you are doing your bookkeeping wrong.

Today’s punitive tax regime that specifically targets small business is raising tax havoc with our small businesses who are struggling just to eke out a small after tax profit. Taxes can kill you just as surely as stress can cause you death. CRA and Stress are spelled the same. A-U-D-I-T.

If you want to live a CRA Tax Free, Stressless life…. Learn to keep a perfect set of books. Our mission is to get the BKS (Bookkeeping Simplified) out there in the market so that small businesses pay only their fair share of taxes. No more tax and no less tax than they are legally obligated to on their non deductible personal expenses.

The tax department gets away with tax payer abuse, simply because the general population keeps mum that they were abused because of social embarrassment. In reality 2,400 auditors who each do over a hundred audits a year, year after year, creating an amazing secret…. Show me an entrepreneur, and I will show you someone who has had a brush in with CRA or who is paying too much tax.

This secret tax shame either needs exposure, or it needs to be eliminated by learning how to keep tax audit proof books.

Be prepared, this down turn in the economy is going to generate a more aggressive tax man, who will want to replace lost income from less businesses with more dollars from fewer businesses.

It is your choice for what solutions to choose, but you need to make one or the other, failing which death and taxes are spelled the same as taxman.

Posted in Tax Topics, The Tax System, Tax Tips | Print | 1 Comment »

November 4, 2008 by Dan White.

You never know when you’ll need a lawyer for tax issues or otherwise.  But getting access to the right lawyer and for the right price is a common problem we all face.   Long gone are the days when we should rely on our parents’ real estate lawyer to fight the CRA.  We need quick and convenient access to lawyers and information on their legal services.

I am announcing to the world that there is an exciting new solution to this age old problem: www.DynamicLawyers.com.  The idea is simple: Need a lawyer?  Make a Post.  Get Free Quotes!  The website just launched in Toronto and will be written about in the Toronto Star.  This website is a free and invaluable tool when it comes to finding the right lawyer.  All you have to do is make a free, anonymous, and easy-to-make post of your legal issue(s) and then wait for local lawyers to respond to you by e-mail.  You can request their expertise and quotes for how much their services will cost and give them a timeline as well.

If you’re like many of us, and avoid picking up the phone to call your lawyer, those days are gone.  The role of the lawyer is growing, with more and more areas of specialization.  Today’s world is an ever more litigious society with multiple levels of regulation, heavy taxation and new technologies.  Your chances of needing a lawyer, tax litigation or otherwise, have dramatically increased.

www.DynamicLawyers.com gives everyone access to a vast group of legal expertise instantly.  You simply post your issue, and the lawyer members will bid on your case.

The fully searchable website will become a large database where you can get self-help information in the form of Legal-Ease Guides (e.g. how to incorporate your business, how to get an uncontested divorce, how to fight a traffic ticket, how to draft a will, how to file a small claims court action, etc.).

The site is free, anonymous and will set you in the right direction to making informed decisions.

To illustrate how it works, let’s take a common life scenario.  You come home from a long day at work to find a nasty brown government envelope in your mail.  It’s Canada Revenue Agency and you’re being audited on your income taxes.  Instead of breaking out in a sweat, you can go on www.DynamicLawyers.com and make an anonymous post about your situation.  The network of lawyers is there to reply.  Lawyers may give you an overview of your rights, the risks and potential pitfalls, explain the costs involved, and their experiences with respect to resolving your issue(s), etc.  You can compare the responses you receive.  You’re under no obligation to select a lawyer.  You can then make an informed decision about your course of action.  You may even determine it is best is to seek some representation in your situation from one of the lawyers who have responded.

So go to www.DynamicLawyers.com right now and bookmark this page.  Make legal peace of mind only a click away.  Getting a letter from the tax man (or any other legal issues that pop up) can now go down the stress scale rating.

The beauty of www.DynamicLawyers.com is that you are empowered.  You no longer have to sit back and accept what life throws your way – get informed and put the odds in your favour.  Need a Lawyer?  Make a Post.  Get Free Quotes!

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